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Tenant Improvement Costs
Tenant improvement costs are of concern to property managers, building owners, other asset managers as well as new tenants. Depending on the situation, the costs of improving any space may be covered by one party, or split between two parties. In the instance of a landlord and a new tenant, they may reach an agreement to split the costs of a renovation in order to come to an agreement that is favorable to both parties. Thereby, knowing what the cost of the tenant improvement will be before executing a new lease or agreeing to renovate your commercial facility is important to budgeting and controlling costs.

When entering into a lease, many tenants will want to renovate an existing space. The scope of this type of renovation can include new carpet, paint, electrical work, major or minor remodel, and possibly even an addition to the space if it doesn't completely fit the new tenants' needs. Before signing into the lease, make sure there is a clear understanding of what renovations are needed, who will cover the cost of renovation and what the costs associated are.

In addition to learning about the specific costs, enlist the help of a general contractor that has years of experience estimating jobs of this type. Potential hidden costs can wreak havoc on a budget turning what initially may seem to be a simple remodel into a complicated and costly undertaking.

Basic tenant improvement costs are as follows:
Construction Costs
Architectural Costs
Permit Costs

Some of the items that are often overlooked by asset managers and new tenants that can greatly increase the cost of the tenant improvement are:
Electrical Work
Plumbing Repairs, Relocations or Additions
Mechanical Issues such as HVAC
Out of Date Equipment or Deferred Maintenance Issues
Outlets, Fixtures, Switches, Service Panels
Sprinkler Systems
Paint and Flooring
Having Walls Removed or Moved
New Doors and Windows

Because of the wide variation of tenant improvements that can be made, based on the tenants specific needs, a qualified general contractor with a thorough understanding of the tenant renovation should be hired to complete your project.

A general contracting company can provide commercial construction management services to customers throughout the state of licensing. As a State Certified General Contractor, they are able to manage your project from start to finish with the care and attention to detail you would expect to see.

Their extensive knowledge of the industry enables them to compile better estimates. They design, price and build construction projects using our real-world information based on trends and past projects and verify all estimates and prices before giving them to their customers.

A good general contractor will guarantee that their projects will be completed on time, for a competitive price and that their customers will be satisfied with a high-quality, finished construction project.

Maureen McHale is a web marketing consultant specializing in SEO, content marketing and website design.

Providing both interior and exterior commercial building services throughout the state of Florida since 1993, American Facility Services (AFS) has built a solid reputation based on safety, quality and customer service. Contact AFS today at 866-793-3735 or visit our website for an online proposal for your tenant improvement project.

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